4  !»#$&£& f  &4S 


Library 

OF  THE 

University  of  NortK  Carolina 


This  book  was  presented  b.y 

C^eo  1 0(T  i  c.slL  5u — 


X 


% 


PRESS  BULLETIN  No.  175 

OF  THE 

N.  C.  GEOLOGICAL  AND  ECONOMIC  SURVEY 

JOSEPH  HYDE  PRATT,  State  Geologist 
Chapel  Hill,  N.  C. 

Released  for  Publication  August  lO.  1920 


THE  WATER  POWERS  OF  NORTH  CAROLINA 

INTRODUCTION 

By  Joseph  Hyde  Pkatt 

The  North  Carolina  Geological  and  Economic  Survey  is  constantly 
receiving  requests  for  information  regarding  the  water  powers  of  the 
State,  for  assistance  in  making  preliminary  surveys  of  water  powers, 
and  for  information  regarding  and  assistance  in  developing  the  small 
water  powers  for  use  in  connection  with  farms.  Although  many  of  the 
larger  water  powers  of  the  State  have  already  been  developed  there  yet 
remain  many  water  powers  capable  of  developing  from  a  few  thousand 
to  thirty  thousand  horse  power  not  yet  developed,  besides  hundreds  of 
smaller  water  powers  from  one  hundred  to  a  thousand  horse  power, 
and  innumerable  smaller  water  powers  that  could  be  utilized  by  farms 
and  communities.  The  manufacturing  industries  of  North  Carolina 
could  and  would  use  many  thousands  more  horse  power  if  same  was 
available.  The  utilization  of  more  of  our  water  powers  would  reduce 
that  much  the  demand  in  this  State  for  fuel  and  would  make  it  possible 
to  develop  manufacturing  industries  where  now  it  is  impossible  to  do 
so  if  dependent  upon  coal  as  a  source  of  fuel. 

Certain  legislation  is  necessary  before  it  will  be  possible  to  develop 
the  water  powers  to  the  extent  that  they  should  be  developed  in  this 
State.  The  water  power  situation  in  North  Carolina  has  been  very 
carefully  studied  by  Mr.  Thorndike  Saville,  Hydraulic  Engineer  of  the 
Survey,  and  he  presented  the  results  of  this  study  before  a  meeting  of 
the  State  Chamber  of  Commerce  at  Wilmington,  N.  C.,  July  21,  1920. 
This  discussion  is  given  here  in  full. 


THE  WATER  POWER  SITUATION  IN  NORTH  CAROLINA* 


By  Thorndike  Saville 

Hydraulic  Engineer,  N.  C.  Geological  and  Economic  Survey 

The  discussion  of  the  water  power  situation  in  a  state  before  such  a  gather¬ 
ing  as  this  is  most  easily  (and  I  might  say  most  commonly)  treated  as  a 
mere  glorification  of  the  water  power  resources  of  the  state.  It  would  be 
easy  to  discourse  to  you  upon  these  resources ;  point  out  to  you  that  North 
Carolina  contains  more  undeveloped  water  powers  than  any  other  state  east 
of  the  Mississippi,  excepting  only  New  York ;  describe  the  location  and 
extent  of  our  magniflcient  streams  and  falls  which  might  be  utilized  for  power; 
and  enumerate  almost  without  end  the  superiority  of  this  state  in  such  nat¬ 
ural  advantages.  Instead,  if  you  will  permit  me,  I  wish  to  undertake  the 
less  agreeable  task ;  to  dwell  in  a  somewhat  critical,  but  I  trust  constructive, 
manner  upon  the  backwardness  of  this  state  in  utilizing  the  tremendous  re¬ 
sources  with  which  nature  has  favored  her ;  to  consider  the  effects  of  extra¬ 
state  developments  of  our  powers,  and  of  the  recently  enacted  Federal  Power 
Bill ;  to  outline  certain  definite  plans  which  the  State  Geological  and  Economic 
Survey  now  has  under  way  for  the  immediate  exploitation  and  development 
of  North  Carolina  water  powers ;  and  finally  to  request  your  active  cooper¬ 
ation  in  urging  the  necessary  legislative  and  financial  assistance  which  is  vitally 
important  if  the  prosperity  and  industrial  growth  inherent  in  our  water  powers 
is  to  remain  the  property  of  the  people  of  this  state  and  be  developed  for 
their  advantage. 

North  Carolina  has  been  peculiarly  favored  by  nature  in  two  great  natural 
resources ;  her  forests  and  her  streams.  Each  year,  through  lack  of  scientific 
administration  and  control  the  state,  its  industries,  and  its  citizens  lose  mil¬ 
lions  of  dollars  by  non-utilization  or  malutilization  of  these  resources.  It  is 
not  my  province  here  to  do  other  than  mention  the  waste  and  destruction  of 
our  forest  lands.  The  State  Geological  and  Economic  Survey  has  readily 
available  the  details  of  this  enormous  annual  loss.  As  you  have  seen  from  the 
data  furnished  to  your  temporary  Secretary  and  published  for  the  convention, 
recent  estimates  place  the  undeveloped  water  powers  of  the  state  at  approx¬ 
imately  one  million  horse  power.  This  is  continuous,  or  24-hour  power.  At 
5  cents  per  kilowatt  hour,  this  would  amount  to  $4,000,000  per  year.  It  is 
probable  that  with  storage,  inter-connection  of  units,  and  other  commercial 
practices,  that  this  annual  return  could  easily  be  doubled. 

The  manufacturing  industries  of  North  Carolina  are  even  now  clamoring 
for  more  power.  This  state,  second  in  the  entire  country  in  the  manufacture 
of  cotton  goods,  is  only  upon  the  eve  of  a  tremendous  industrial  expansion. 
New  enterprises  demand  electric  power,  established  industries  are  rapidly 
changing  from  steam  or  water  driven  plants  to  motor  drive,  and  those  equipped 
with  machinery  turned  by  water  wheels  or  turbines  are  changing  their  oper¬ 
ation  to  utilize  the  water  power  for  driving  electric  generators  which  in  turn 
operate  individual  motors  and  so  greatly  increase  plant  flexibility. 

New  industries  desiring  to  establish  themselves  in  more  than  one  city  in  this 
state  during  the  past  year  have  been  forced  to  abandon  their  plans  and  locate 
elsewhere  on  account  of  inadequate  power  supply.  Within  the  past  week  the 
State  Survey  has  had  an  inquiry  as  to  water  power  available  for  operating 
electric  furnaces.  We  can  only  point  out  to  the  company  which  may  desire  to 
locate  here  the  districts  where  suitable  water  power  and  rail  facilities  exist ; 


*  Address  before  State  Chamber  of  Commerce,  Wilmington,  N.  C.,  July  21,  1920. 


2 


3?/  3 


there  is  no  surplus  of  developed  power  in  the  state.  .More  power  must  be 
quickly  made  available  if  the  manufacture  of  North  Carolina  products  is  to  be 
retained  and  fostered  within  the  state. 

The  railroads  of  the  state,  particularly  those  whose  lines  contain  the  steep 
grades  of  the  western  districts,  are  already  interesting  themselves  in  electrifi¬ 
cation.  If  the  activities  of  the  South  Atlantic  States  Association  meet  with 
the  expected  success,  trade  from  North  Carolina  ports  will  he  heavily  stimu¬ 
lated,  with  consequent  increased  freight  movements.  A  large  part  of  the 
present  freight  congestion  is  due  to  the  enormous  quantities  of  coal  carried 
by  the  railroads,  of  which  in  many  instances  50  per  cent  is  consumed  in  their 
own  locomotives.  Electrification  then  works  a  triple  saving ;  in  more  efficient 
power,  in  decreased  freight  movement,  and  in  conservation  of  a  depleted 
natural  resource. 

The  locomotive  is  about  6  per  cent  efficient,  the  best  steam  power  plant 
about  15  per  cent  efficient,  and  an  ordinary  hydro-electric  plant  85  per  cent 
efficient.  Added  to  the  low  efficiencies  of  steam  plants,  is  the  ever  mounting 
cost  of  coal  and  oil,  and  the  difficulty  in  obtaining  them.  Moreover,  the  use 
of  electricity  usually  means  decreased  labor  which  is  no  mean  advantage  in 
these  days  of  labor  difficulties.  Most  North  Carolina  manufacturers  have 
felt  these  troubles  acutely.  The  keenest  sort  of  competition  will  meet  the  new 
industrial  development  of  the  South.  Only  decreased  cost  of  production  will 
enable  this  section  to  hold  its  own.  The  use  of  its  great  resources  of  hydro¬ 
electric  energy  seems  the  most  immediate  and  desirable  method  by  which  this 
state  may  take  its  place  as  a  great  industrial  as  well  as  agricultural  com¬ 
munity. 

Nor  are  the  manufacturing  industries  alone  concerned  in  the  matter.  The 
vast  agricultural  interests  of  the  state  have  not  yet  turned  in  any  degree  to 
the  utilization  of  electricity.  The  increasing  difficulty  in  obtaining  farm  labor, 
the  high  wages,  and  necessity  for  using  labor  saving  machinery  on  the  farm, 
should  cause  North  Carolina  farmers  to  turn  their  eyes  westward  to  Cali¬ 
fornia,  Washington,  and  Oregon.  A  network  of  transmission  lines  traverses 
these  states,  linking  together  steam  and  water  power  plants.  In  Oregon  alone 
some  12,000  h.p.  is  sold  in  strictly  rural  districts.  In  all  of  these  states,  and 
in  large  agricultural  districts  in  Canada,  farmers  take  their  power  from  the 
transmission  lines.  The  result  is  not  alone  more  and  cheaper  power,  but  the 
improvement  of  rural  living  conditions  consequent  upon  electric  lights,  water 
supply,  electric  washing  and  sewing  machines,  etc.  Will  not  similar  devel¬ 
opments  be  called  for  in  this  state,  rich  as  it  is  in  potential  hydro-electric 
power  ? 

It  is  estimated  that  about  325,000  h.p.  of  electrical  energy  is  developed 
by  water  power  in  North  Carolina.  Of  this  some  200,000  h.p.  is  either  trans¬ 
mitted  for  use  outside  the  state,  or  used  by  a  very  few  large  industries  which 
have  developed  their  own  power.  Only  about  125,000  h.p.  of  all  that  developed 
in  the  state  is  available  for  general  use.  Of  this  about  95,000  h.p.  or  7G  per  cent 
is  controlled  by  two  large  hydro-electric  corporations.  Both  of  these  corpor¬ 
ations  have  stated  recently  that  they  were  sold  out  on  all  power  now  devel¬ 
oped,  and  that  they  were  not  in  a  position  to  develop  new  sites  in  the  im¬ 
mediate  future  to  supply  the  increased  demand  for  power.  Most  of  the  re¬ 
maining  30,000  h.p.  of  hydro-electric  power  is  developed  by  individual  man¬ 
ufacturing  enterprises  or  by  municipalities,  and  in  every  case  by  relatively 
small  developments. 

The  requirements  for  power  in  North  Carolina  are  considerably  in  excess 
of  the  supply  even  at  the  present  time.  So  conservative  an  authority  as 
“Electrical  World”  estimates  that  we  shall  need  219,000  h.p.  in  excess  of  our 
present  supply  by  1930.  This  is  an  increase  of  68  per  cent  in  less  than  ten 
years.  The  demand  for  additional  power  is  insistent  and  ever  increasing. 
How  shall  it  be  met?  The  high  prices  of  materials  and  labor,  restrictions  irn- 

3 


/ 

posed  by  public  service  commissions,  and  until  lately  unfavorable  regula¬ 
tions  relative  to  developments  upon  public  lands,  have  made  it  difficult  for 
hydro-electric  corporations  to  obtain  funds  for  new  construction.  The  initial 
expenditure  for  construction  of  large  dams,  power  houses  and  transmission 
lines  is  today  very  great,  and  the  return  on  the  investment  is  often  not  such 
as  to  attract  private  capital  for  general  power  supply  developments. 

It  seems  probable  that  for  the  next  few  years,  critical  years  so  far  as  the 
industrial  growth  of  the  State  is  concerned,  will  see  no  great  additions  to  the 
water  power  developments  of  public  service  corporations  now  controlling  the 
greater  part  of  the  general  power  supply  of  the  State.  Immediate  power 
development  may  be  accomplished  in  one  of  three  ways :  by  the  individual 
manufacturer ;  by  the  municipalities,  acting  as  corporate  bodies  or  through 
local  public  service  corporations ;  by  state-constructed  developments  leased  to 
operating  companies  or  municipalities. 

The  manufacturer  now  seeking  to  establish  new  industries  or  additional 
factories  utilizing  electric  power  must  depend  either  upon  power  furnished  by 
the  municipality,  or  look  about  for  a  locality  where  he  can  himself  develop  a 
water  power  of  suitable  magnitude.  The  problem  of  municipally-supplied 
power  is  considered  in  the  following  paragraph.  If  the  manufacturer  wishes 
to  develop  his  own  power  he  has  numerous  possibilities  upon  which  to  draw. 
There  are  a  number  of  streams  in  the  northwestern  portion  of  the  state  which 
are  admiralty  situated  as  regards  moderate  water  power  sites,  which  can  be 
economically  developed,  and  which  are  near  rail  connections.  The  State 
Geological  and  Economic  Survey  has  had  a  field  party  within  the  last  month 
investigating  the  power  resources  of  Surry  County.  On  the  Ararat  Iiiver  have 
been  discovered  two  or  three  possible  developments,  which  are  not  more  than 
five  miles  from  excellent  rail  connections.  A  factory  built  near  the  railroad 
needs  only  to  develop  one  of  these  sites,  build  five  miles  of  transmission  line, 
and  it  is  independent,  so  far  as  power  is  concerned.  This  is  only  one  example 
of  the  streams  of  this  district,  which  are  unusually  well  adapted  by  constant 
flow  and  good  dam  sites  for  developments  of  from  500  to  2,500  h.p.  Similar 
possibilities  exist  in  other  sections  not  yet  covered  in  the  detailed  investigations 
of  the  Survey. 

Progressive  municipalities  in  the  state  are  many  of  them  becoming  alarmed 
at  the  power  shortage,  seeing  industries  locating  elsewhere,  and  the  growth  of 
the  city  stopped  from  dearth  of  power.  Finding  it  impossible  to  obtain  more 
power  from  the  hydro-electric  corporations  they  are  contemplating  municipal 
developments  of  water  power  sites.  Many  of  our  larger  cities  are  well  situated 
for  this  purpose  near  undeveloped  sites.  They  can  afford  to  spend  large  sums 
in  such  developments  at  a  small  rate  of  interest  on  the  investment,  since  the 
difference  between  what  their  plant  may  earn  and  what  stockholders  in  a 
private  company  would  demand  is  the  benefit  accruing  to  the  municipality 
through  the  mere  possession  of  power  and  the  industry  which  it  attracts.  Such 
a  return  is  intangible,  but  very  real,  and  of  benefit  to  every  element  in  the  city. 
At  the  present  time  the  Survey  is  conducting  an  investigation  for  a  large  city 
in  this  state,  to  indicate  the  best  location  for  a  municipal  water  power  develop¬ 
ment. 

It  is  highly  desirable  that  the  smaller  developments  made  by  individual 
concerns  or  municipalities  should  be  tied  into  one  controlling  system.  More¬ 
over,  there  are  numerous  cities  and  towns  not  so  located  or  financially  situated 
as  to  be  able  to  make  their  own  developments,  and  a  large  additional  supply 
of  general  power  is  now  needed  in  the  state.  For  these  purposes  sveral  large 
developments  are  desirable.  The  larger  water  powers  of  the  state  are  inherently 
a  natural  resource,  the  utilization  and  enjoyment  of  which  is  essentially  an 
attribute  of  the  state  itself.  The  eastern  states  having  large  water  power  re¬ 
sources  are  coming  to  the  view  which  has  long  prevailed  in  the  West :  namely, 
that  the  state  should  assert  its  right  to  the  control  of  water  powers  of  the 
larger  streams,  and  revoke  the  reparian  laws  in  so  far  as  they  prevent  power 


4 


development  by  the  state.  Under  present  conditions  the  state  can  better  afford 
than  any  other  agency  to  construct  large  dams  and  the  appurtenances  of  hydro¬ 
electric  developments.  The  state  can  get  money  more  cheaply  and  can  condemn 
land  by  eminent  domain  where  selfish  owners  hold  out  for  unreasonable  sums. 
It  can  use  these  major  developments  as  controls  into  which  the  smaller  powers 
may  be  connected.  It  may  then  advantageously  lease  them  to  operating  com¬ 
panies  for  a  term  of  years.  This  solution  of  the  power  problem  has  worked 
wonders  in  the  Canadian  provinces,  is  in  partial  operation  in  several  states, 
•and  is  advocated  by  many  state  conservation  commissions. 

A  most  important  phase  of  state  interest  in  water  powers  lies  in  the  adminis¬ 
tration  and  supervision  of  all  the  water  resources  of  the  state.  In  nearly  all 
of  the  larger  water  power  producing  states  in  this  country,  North  Carolina 
excepted,  there  is  now  legislation  giving  to  the  State  Geological  Survey  or  Con¬ 
servation  Commission  authority  to  control  and  regulate  the  development  of 
water  powers  and  water  supplies  in  the  state.  The  construction  of  great  dams 
and  impounding  reservoirs  have  far  reaching  consequences  quite  aside  from 
their  relation  to  power  development.  Indeed,  in  New  York  the  creation  of 
water  powers  has  been  made  subsidiary  to  reservoirs  for  flood  prevention,  and 
the  Conservation  Commission  passes  first  on  this  phase  of  projected  develop¬ 
ments.  In  North  Carolina  especially,  should  the  regulation  of  flood  flows  be 
considered,  with  the  attendant  erosion  of  hillsides  and  destruction  of  valuable 
•agricultural  bottom  lands,  together  with  the  silting  of  navigable  streams. 
Inland  navigation  is  destined  to  play  an  important  part  in  the  local  transporta¬ 
tion  problem,  and  rivers  should  not  be  forever  closed  to  navigation  by  the  con¬ 
struction  of  dams  unprovided  with  locks.  In  many  power  reservoirs  in  this 
state  silting  has  so  far  reduced  the  available  volume  of  storage  that  the  effi¬ 
ciency  of  the  plant  has  been  greatly  impaired.  The  stability  of  great  dams 
necessary  for  water  power  and  water  supply  purposes  is  essentially  a  matter 
of  public  safety,  and  as  such  concerns  the  state.  To  interrelate  development  of 
the  state’s  water  resources,  and  for  proper  consideration  of  all  of  the  economic 
engineering  and  social  factors  involved,  it  is  believed  that  a  properly  qualified 
state  board  should  pass  on  all  projects  for  power  development.  Such  an  organi¬ 
zation  is  operative  in  most  other  states. 

A  further  reason  for  such  control  is  that  with  the  development  of  the  smaller 
water  powers,  either  by  municipalities  or  by  individuals,  or  as  part  of  a  larger 
scheme,  it  is  vitally  necessary  that  they  be  inter-connected  into  a  larger  system 
for  efficient  regulation.  The  hydro-electric  industry  is  by  nature  essentially 
monopolistic.  For  greatest,  or  even  moderate,  efficiency  the  individual  develop¬ 
ments  of  a  district  or  state  or  group  of  states  must  be  inter-connected.  While 
the  immediate  future  may  see  many  small  developments  in  this  region,  there 
wrill  be  a  strong  tendency  for  these  to  be  amalgamated  into  a  larger  system, 
either  with  those  now  existing  in  the  state,  or  in  some  combination  of  these,  or 
by  state  control.  In  any  event,  to  provide  for  systematic  development,  prevent 
private  monopoly,  and  agreements  in  restraint  of  trade  or  for  controlling  prices, 
and  to  ensure  continuous  operation  and  service  at  the  least  cost  to  consumers, 
there  is  needed  immediately  a  law  authorizing  the  regulation  and  control  of 
all  the  water  resources  of  the  state,  in  order  that  future  developments  may  be 
harmonized,  and  may  be  carried  on  in  a  systematic  manner  for  the  best  advant¬ 
ages  of  the  state. 

The  water  resources  of  the  state  are  the  inalienable  heritage  of  the  people 
of  the  state.  The  administration  and  control  of  them  inheres  in  the  state  and 
not  in  the  nation.  The  enactment  of  the  federal  water  power  bill  is  of  vital 
concern  to  all  states,  since  the  powers  of  the  national  government  under  the 
terms  of  this  bill  are  so  sweeping  as  to  seriously  atfect  state  conti ol  of  its 
water  power  resources  unless  certain  provisions  are  made.  The  Power  Com¬ 
mission  is  authorized  to  issue  licenses  for  and  administer  the  operation  of 
water  powder  developments  upon  the  “navigable  waters  of  the  United  States,  01 
upon  any  part  of  the  public  lands  and  reservations  .  .  .  and  to  diieet  the 


5 


construction,  maintenance  and  operation  of  headwaters  or  other  improvements: 
of  streams  upon  which  the  Commission  is  empowered  to  issue  licenses.”  This  is 
a  very  comprehensive  provision,  but  the  act  further  provides  that  applicants 
for  federal  license  must  have  “complied  with  the  requirements  of  the  laws  of 
the  state  or  states  within  which  the  proposed  project  is  located”  relating  to 
use  and  manufacture  of  power  and  that  nothing  within  the  act  “shall  be  con¬ 
strued  as  affecting  or  intended  to  affect  *  *  *  the  laws  of  the  respective 

states  relating  to  the  control,  appropriation,  use,  or  diversion  of  water.” 

The  provisions  of  the  water  power  act  are  excellent  and  will  greatly  stimu¬ 
late  the  development  of  water  powers,  especially  upon  the  public  lands,  such 
as  forest  reserves,  large  areas  of  which  exist  in  North  Carolina.  It  is  evident 
that  where  states  have  adequate  laws  relating  to  the  administration  and  con¬ 
trol  of  their  water  resources  they  are  eminently  safeguarded  from  encroach¬ 
ment  by  any  decisions  of  the  Federal  Power  Commission.  But  let  us  see  what 
happens  when,  as  in  North  Carolina,  no  such  conservations  laws  are  in  effect. 
The  act  here  provides  “that  in  case  of  the  development,  transmission  or  distri¬ 
bution  or  use  in  public  service  of  power  by  any  licensee  .  .  .  engaged  in 

public  service  within  a  state  which  has  not  authorized  or  empowered  a  com¬ 
mission  or  other  agency  or  agencies  within  said  state  to  regulate  and  control 
the  service  to  be  rendered  by  such  licensee  or  by  its  customer  .  .  .  juris¬ 

diction  is  hereby  conferred  upon  the  Commission  ...  to  exercise  such 
regulation  and  control  until  such  time  as  the  state  shall  have  provided  a  com¬ 
mission  or  authority  for  such  regulation  and  control.” 

As  has  been  stated  North  Carolina  has  no  conservation  or  water-use  law. 
The  Federal  Power  Commission  has  been  appointed  within  the  past  month, 
and  is  now  functioning.  If  we  do  not  quickly  enact  the  necessary  legislation  to 
preserve  the  administration  of  our  water  resources  to  the  state,  they  will  be 
administered  by  the  Federal  Government.  Such  legislation  should  provide  for 
issuance  of  franchises  under  similar  terms  as  the  federal  franchises  to  corpora¬ 
tions  or  municipalities  for  power  and  water  supply  purposes.  It  should  provide 
some  slight  return  to  the  state  for  the  utilization  of  these  privileges,  and  safe¬ 
guard  the  rights  which  are  inherent  to  the  state  which  have  been  outlined 
above.  Moreover,  provision  should  be  made  for  preventing  or  regulating 
development  of  North  Carolina  water  powers  for  transmission  of  electrical 
energy  outside  the  state.  Tennessee  has  requested  its  legislature  to  pass  a  law 
for  a  similar  purpose,  yet  in  a  report  published  last  year  there  are  specific 
plans  outlined  for  developing  100,000  h.p.  in  western  North  Carolina  to  be 
transmitted  for  use  in  Tennessee.  It  might  be  added  that  the  survey  on  which 
this  report  was  based  was  made  by  the  Tennessee  Geological  Survey  with  funds 
furnished  by  the  Knoxville  Chamber  of  Commerce.  The  Federal  Power  Com¬ 
mission  will  not  be  interested  in  retaining  the  natural  resources  of  a  state  for 
use  in  that  state,  and  the  state  must  look  to  its  own  interests. 

The  foregoing  should  make  it  plain  that  North  Carolina  must  immediately 
proceed  to  consider  a  definite  policy  relating  to  the  conservation,  regulation, 
and  control  of  its  water  resources ;  enact  necessary  legislation,  and  delegate  the 
enforcement  of  the  laws  to  the  proper  state  authority.  The  State  Geological 
and  Economic  Survey  is  charged  with  the  compilation  of  data  relating  to  and 
the  investigation  of  the  natural  resources  of  the  state,  including  water  power. 
Realizing  the  gravity  of  the  present  situation,  it  presents  the  following  definite 
outline  of  a  state  water  resource  policy,  some  of  which  it  now  has  in  opera¬ 
tion,  and  some  of  which  needs  legislative  action  to  become  effective. 

I.  A  Power  Census.  The  compilation  of  data  relating  to  the  present 
status  of  power  development  and  power  demand  in  the  state.  No  accurate 
figures  are  obtainable,  the  reports  of  the  U.  S.  Census,  the  U.  S.  Geological 
Survey,  and  other  authorities  differ  materially.  An  exact  knowledge  of  what 
our  present  condition  is  as  relates  to  all  kinds  of  power  needs  is  necessary 
before  planning  any  elaborate  schemes  for  the  future.  The  Survey  will  shortly 
send  out  a  power  questionnaire  to  every  manufacturer  and  municipality  in  the 


6 


state  that  it  can  reach.  Many  of  those  present  will  receive  them.  It  is  only 
by  a  complete  cooperation  in  replying  accurately  to  this  questionnaire  that  we 
■can  obtain  this  highly  important  data. 

II.  A  Water  Resources  Investigation.  A  comprehensive  survey  and 
investigation  of  the  water  resources  of  the  state.  For  many  years  the  State 
Geological  and  Economic  Survey,  in  cooperation  with  the  United  States  Geo¬ 
logical  Survey  has  maintained  gaging  stations  on  the  principal  streams  for 
the  purpose  of  accumulating  discharge  statistics,  and  has  issued  two  bulletins 
on  water  power.  But  it  is  much  more  detailed  information  which  the  city  or 
manufacturer  proposing  water  power  developmenes  desires  to  know,  such  as 
the  location  of  suitable  powers  of  various  magnitude,  stream  flow  data,  dam 
sites,  storage,  power  that  can  be  developed,  costs,  etc.  Recognizing  the  imme¬ 
diate  need  of  such  information,  the  Survey  organized  this  spring  a  Water  Re¬ 
sources  Division,  charged  with  the  investigation  of  all  matters  relating  to 
water  supply,  water  power,  flood  regulation,  drainage,  and  inland  navigation. 
The  most  immediate  question  studied  has  been  the  water  power  situation. 
With  the  very  limited  funds  available  a  party  has  been  put  into  the  field  to 
work  up  the  water  powers  of  Surry  and  Caldwell  counties,  and  local  surveys 
have  been  made  for  individual  cities  and  towns.  To  do  this  work  piecemeal 
with  the  present  meagre  appropriation  will  take  several  years  to  cover  the 
state.  Immediate  information  is  necessary,  and  for  a  state-wide  survey  of  the 
water  resources  an  appropriation  of  $10,000  is  not  large.  The  return  to  the 
state  would  be  manifold. 

III.  A  State  System  of  Power  Development.  The  Survey  is  now  at 
work  on  a  general  scheme  for  district  power  service  by  which  the  smaller 
powers  as  they  are  developed  may  be  inter-connected  and  tied  into  a  larger  con¬ 
trolling  system.  In  turn  plans  should  be  worked  out  with  the  hydro-electric 
corporations,  municipalities,  and  manufacturers  interested,  for  general  inter¬ 
connection  of  all  power  developments  in  the  state,  and  the  operation  and  regu¬ 
lation  of  the  combined  system.  The  larger  developed  powers  are  already  inter¬ 
connected  to  a  considerable  extent,  but  legislation  is  needed  to  provide  for 
inter-connection  of  the  smaller  powers  and  for  state  control  and  regulation. 

IV.  A  Water  Resource  Law.  A  conservation  law  similar  to  those  of 
New  York  and  California.  Such  a  law  would  retain  to  the  state  authority  over 
her  water  and  forest  resources  which  will  otherwise  be  exercised  by  federal 
commissions.  It  would  provide  for  state  franchises,  similar  to  those  issued  by 
the  federal  government ;  and  for  development  and  operation  of  the  water  re¬ 
sources  of  the  state  for  water  supply  or  water  power  or  navigation  purposes. 
Regulation  and  control  of  such  development  would  be  delegated  to  the  State 
Geological  and  Economic  Survey,  which  would  scrutinize  applications  with 
respect  to  their  effect  on  the  general  power  scheme  outlined  above,  the  stabil¬ 
ity  of  dams,  the  adequacy  of  service,  the  effects  on  flood  control,  erosion  and 
navigation,  and  the  probable  market  for  the  power  generated.  The  matter  of 
rate  regulation  is  already  delegated  to  the  State  Corporation  Commission, 
with  which  the  Survey  would  cooperate  in  determining  fair  values  for  taxation 
and  rates. 

It  is  believed  that  this  program  is  definite  and  constructive.  It  is  presented 
for  the  consideration  of  the  State  Chamber  of  Commerce  as  the  body  most 
interested  in  power  development  in  the  state.  The  program  is  not  arbitrary, 
and  the  Survey  will  be  glad  of  suggestions  as  to  amendment  and  change.  The 
support  of  your  organization  will  go  far  toward  having  it  adopted  with  the 
utmost  expediency,  and  your  cooperation  and  help  is  urgently  desired.  With  it 
we  may  have  before  another  year  is  passed  a  state  law  providing  for  regula¬ 
tion,  and  control  of  our  water  powers  in  the  best  interest  of  the  industries  ot‘ 
the  state,  and  can  begin  a  comprehensive  investigation  of  the  power  sites  and 
the  collection  of  data  on  a  large  scale  which  will  be  invaluable  to  those  con¬ 
templating  power  developments. 


7 


It  is  popularly  supposed  that  public  boards  and  commissions  are  soulless 
creatures,  designed  to  perform  routine  work,  or  to  provide  4-year  havens  of 
refuge  for  political  henchmen.  But  some  state  boards  are  peculiar.  They  have 
visions ;  visions  that  are  not  altogether  chimerical.  Some  of  us,  engineers  and 
college  professors  though  we  are,  believe  that  we  can  see  in  the  not-distant 
future  the  time  come  when  all  the  great  resources  of  nature  shall  be  harnessed 
for  the  use  and  convenience  of  man  and  administered  for  the  greatest  benefit 
of  the  people,  whether  that  be  in  turning  the  wheels  of  industrial  enterprise  or 
providing  electric  lights  in  the  home  of  the  humblest  farmer.  You,  gentlemen, 
are  trained  to  consider  affairs  in  terms  of  dollars  and  cents.  We  believe  it  is 
a  program  of  practical  conservation  to  which  we  ask  your  cooperation  and  aid. 
It  has  for  its  inception  the  maximum  welfare  of  the  state,  and  for  its  end  the 
creation  of  wealth  and  the  provision  of  the  beneficial  attributes  of  modern 
civilization  for  every  citizen  of  the  state. 


I 


